Mutual societies

Mutual societies are organizations owned and operated by their members, who share common interests or goals. Members pay regular contributions or premiums, and in return, the society provides benefits such as insurance, savings, or support services. Profits or surpluses are typically reinvested to benefit members or shared among them, rather than distributed to shareholders. Examples include mutual insurance companies and building societies. These organizations emphasize collective risk-sharing and member empowerment, functioning based on mutual aid rather than profit maximization for external investors.